Every field has its myths.  It is much the same with the mortgage loan market in Poland – it also has its myths. In this post I’ve chosen 6 of them. These are opinions heard from customers or found on the Internet.

#1 The minimum down payment on the Polish mortgage market is 20%

This would mean that the maximum LTV is 80% (more about LTV I wrote in the previous post: ‘Flat renovation….’). This myth results from the fact that, in accordance with the guidelines of the Polish Financial Supervisory Agency (KNF), since 2017 banks in Poland may grant mortgage loans with at least 20% own contribution.

However, the same recommendation also states that bank may grant a loan with 10% down payment (90% LTV), if onlythe bank applies the so-called Low Deposit Insurance.

Some banks charge this insurance in the form of a separate insurance premium, while others will price it in the interest rate (so you won’t even see it). We currently have at least 10 banks on the market which offer mortgage loans with a minimum contribution of 10% (and you’ll find those with very good offer among them).

By the way, did you know that it is possible not to pay own contribution at all? Yes 🙂 If you provide an additional property as a security. There are banks that in such case won’t require any contribution in cash and you will be able to finance the entire investment with the credit.

#2 Deals with a 10% contribution are much more expensive / you will get much better conditions if you put more cash down

polish-mortgage-loan-mythsIt is true that if you have 20% of your own contribution, there are more attractive offers on the table than with 10% down. Generally, you’ll get a better interest rate. The difference is visible and remarkable. So to be clear, I’m not saying that there is no difference, there is, but it’s not “crushing”, and sometimes such opinions can be found on the web.

#3 You must have a credit history to get a mortgage loan

When deciding whether to grant a loan, the bank takes into account a number of factors. One of them is a credit history. If you have a good credit history, your chances of getting a loan will be higher.

If you have been late in payment, it doesn’t disqualify you from borrowing – it all depends on how often there have been delays, how many days and how big the overdue payments were.

Lack of credit history may lower your rating in some banks. But on the other hand,

I do not remember a single situation when a bank refused to grant a mortgage loan just because the borrower had no credit history.

So don’t worry – if you do not have a credit history in Poland yet, it won’t pose a hurdle to get a mortgage loan.

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#4 If I have a real estate, I can get a mortgage loan even if I have no income

This often surprises my customers. “How come? I put a house worth 1M as collateral, I want to get a 200k loan and the bank still asks me to document my income? Is a collateral not enough?”

It is not enough. The bank must be sure that you have income to repay the loan instalments. Unlike many people think, the bank doesn’t wait opportunity to take away your property.

#5 If I buy a property on a mortgage, I won’t be able to sell it later on

polish-mortgae-loans-mythsAnother myth. You can sell your property at any time. The buyer will repay your loan and if he buys on credit, then your loan will be repaid with his/hers.

There are a lot of such transactions, because a large part of real estate is financed with a mortgage. This doesn’t mean that for this reason they ‘drop out’ of the market. How does such a transaction is carried out I am going to describe in one of the following posts.

#6 You will get the best mortgage loan offer in the bank where you have an account

There are banks that actually offer better conditions to their regular customers.  For example, BZWBK bank will offer a commission of 3% to the customer who submits a mortgage application and who previously did not have an account in this bank. But the same BZWBK bank will offer a commission of 2.5% to its existing customer with an account in this bank who has their salary transferred to it.

However, it doesn’t mean that it will be the best available offer on the market! Among the banks which offer a mortgage with a required 10% equity contribution, there will be at least a few banks whose offer will be better (e. g. Millennium with 0% arrangement fee).

Most banks do not have any “special deals” for their loyal customers at all. Similarly, there is no “fast track” for this category of customers. Sometimes there may be some facilitation in the application process, but it doesn’t make any significant difference.

Definitely, you should find out what offer will be presented to you in the bank where you have an account, but don’t limit yourself to it.


There are many other myths concerning mortgage loans market. The 6, which I described, are simply those I most often come across in my work. Did you believe in any of them? Leave a comment under the post.

If you have any questions about loans please write to me at kamil@polishmortgage.pl. 

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Author

Mortgage broker & credit expert. I help clients to find best mortgage deals saving their time and hassle.